a) Basis of preparation of Financial Statements
 
 * The accompanying Financial Statements have been prepared in
 accordance with the Historical Cost Conventions.
 
 * Accounting Policies not specifically referred to otherwise, are
 consistent with generally accepted Accounting Principles followed by
 the Company, applicable accounting standards prescribed by the
 Companies (Accounting Standards) Rules, 2006, accounting standards
 issued by the institute of Chartered Accountants of India and the
 relevant provisions of the Companies Act. 1956.
 
 * The items of income & expenditure are recognised on accrual basis.
 
 b) Revenue Recognition
 
 * Sales revenue is recognised on dispatch of goods, net of sales
 returns, trade discount and VAT/Sales tax but inclusive of excise duty
 and do not include the cost of materials used for captive consumption.
 
 * Export Incentives are accounted on accrual basis and include the
 estimated value of incentives receivable under the DEPB Scheme and the
 Duty Drawback Scheme. Any difference at the time of actual receipt is
 accounted for in the year of receipt. The amount of export incentives
 has been adjusted with the cost of raw materials consumed.
 
 * Gain/Loss on transfer of Duty Credit Entitlements received under the
 DEPB Scheme is accounted for in the year of transfer.
 
 c) Inventory Valuation
 
 Inventories are valued at the lower of cost and net realisable value.
 Cost of inventories, other than for manufactured finished goods and
 goods in process is determined on Weighted Average Cost Method (net of
 CENVAT credit availed) of stock accounting. Cost of manufactured
 finished goods and goods in process include cost of raw materials
 consumed on weighted average basis and appropriate portion of allocable
 overheads and Excise Duty wherever applicable. Scrap, if any, at the
 year end does not form part of the closing inventory.
 
 d) Fixed Assets and Capital work in progress
 
 Fixed assets are stated at original cost (net of CENVAT credit availed)
 but including freight inward, duties, taxes and other incidental
 expenses relating to acquisition and installation thereof.  Capital
 work in progress includes cost of fixed assets under installation and
 other incidental expenses.
 
 e) Depreciation
    
 Depreciation on Fixed assets is provided on Straight Line Method (SLM)
 at the rates and in the manner prescribed in the schedule XIV of the
 Companies Act, 1956.
 
 f) Valuation of Investments
 
 Long term investments are valued at cost. Short Term Investments are
 valued at lower of cost and fair value, calculated individually for
 each investment.
 
 g) Excise Duty
   
 Excise Duty, wherever applicable, is accounted for at the time of
 manufacture of finished goods.
 
 h) Contingent Liabilities
 
 All known liabilities wherever material are proided for and
 liabilities, which are material and whose future outcome cannot be
 ascertained with reasonable certainty, are treated as contingent and
 disclosed by way of Notes to the Accounts.
 
 i) Employee Benefits
  
 i) Short-term employee benefits are recognised as an expense in the
 Profit & Loss Account of the year in which the related service is
 rendered.
 
 ii) Gratuity liability is defined benefit obligation and is provided
 for on the basis of an actuarial valuation on projected method made at
 the end of the financial year. The Company has created a trust under
 the Group Gratuity Scheme with the Life insurance Corporation of India
 (LIC) and amount paid/payable in respect of the present value of
 Liability for past services is charged to the Profit & Loss Account
 every year. The difference, if any, between the actuarial valuation of
 the gratuity of employees at the year end and the balance of funds with
 LIC is provided for as liability in the books.
 
 j) Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. All other borrowing costs are charged to revenue in the
 period in which they are incurred.
 
 k) Foreign Exchange Transactions
 
 i) Assets and liabilities relating to foreign currency transactions
 remaining unsettled at the year-end are converted into Indian rupees at
 closing rates and any gain or loss arisen is adjusted in profit and
 loss account.
 
 ii) Gains/losses arising out of fluctuations in foreign exchange rates
 between the transaction date and settlement date are recognised in th
 profit and loss account under the head Exchange Rate Fluctuation.
 
 iii) The difference between the forward rate and the exchange rate on
 the date of inception of a forward contract in respect of forward
 contracts with underlying assets or liabilities is recognised as income
 or expense and is amortized over the life of the contract.
 
 iv) Forward exchange contracts entered to hedge the foreign currency
 risk are marked to market as at the year end and the resultant exchange
 gain or loss is recognised in the Profit & Loss Account.
 
 v) Non monetary foreign currency items are carried at cost and
 accordingly the investment in foreign subsidiary is expressed in Indian
 Currency at the exchange rate prevailing at the date of the
 transaction.
 
 L) Provision for Taxation
 
 Provision for taxation is made taking into consideration the provisions
 of Income Tax Act, 1961 and Wealth Tax Act, 1957. Adjustment, if any,
 arising out of the assessment is made in the year the assessment is
 completed.
 
 m) Provision for deferred Taxation
 
 Deferred tax has been provided for all timing differences as required
 under the provisions of Accounting Standards issued by the Institute of
 Chartered Accountants of India.
 
 n) Impairment of Assets
   
 The Company reviews the carrying value of assets for any possible
 impairment at each balance sheet date. An impairment loss is recognized
 when the carrying amount of an asset exceeds its recoverable among. In
 assessing the recoverable among, the estimated future cash flows are
 discounted to their present value at appropriate discount rates.